Indonesia Implements Stricter Energy Distribution Policies

Recalculation of Fuel Import Quotas for Private Stations

The Ministry of Energy and Mineral Resources (ESDM) is recalculating fuel import quotas for private fuel stations to better meet demand ¹

. Director General of Oil and Gas, Laode Sulaeman, stated that the recalculation will be based on consumption patterns and demand trends observed throughout 2025. This move is in line with the principles of natural resource management as mandated by Article 33 of the 1945 Constitution, as emphasized by the President during a recent cabinet meeting.

Tightening LPG 3kg Distribution

In a related energy policy development, the government is preparing to tighten the distribution of 3kg LPG cylinders through a new Presidential Regulation ²

. Currently, there are no specific regulations limiting which income groups can purchase subsidized 3kg LPG. The new regulation will define which deciles will be eligible for the subsidized LPG, aiming to make the distribution more targeted and effective.

Implementation and Expected Outcomes

Both policies demonstrate the government's efforts to improve the management of energy resources and subsidies. The recalculation of fuel import quotas is expected to ensure that supply meets demand more effectively, while the LPG regulation aims to ensure that subsidies reach the intended beneficiaries - lower-income households.